Swift Money is a short term credit broker in the UK offering payday loans. The broker is regulated and authorised by the Financial Conduct Authority. It is not a direct lender, and earns through commission earned from the lenders and brokers in its pool. Hence, no charges are levied on the borrowers by the broker for its services. Borrowers can expect to take out a maximum of £3,500 in loan amount. According to the broker’s website, loan applications made through its platform have a 97% acceptance rate.
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Swift Money is a credit broker facilitating the provision of payday loans for its customers.
Swift Money has a pool of over 20 payday lenders. Each loan application is shared with them to get the best quote for the borrower. Hence, borrowers looking for a payday loan are able to save a lot of time by filing a loan application through a broker, instead of applying individually to multiple payday lenders.
Since Swift Money facilitates payday loan applications, it does accept applicants with a poor credit history provided they are able to prove that their income is sufficient and regular. Most payday lenders are only looking for applicants with a stable income stream, and although they do conduct credit checks, their decisions are mostly based on affordability rather than credit rating of the borrower.
Borrowers usually take out payday loans through Swift Money to fulfill many kinds of small but necessary expenses, such as bills pertaining to car repairs, rent, unexpected bills, medical expenses, or mortgage, to name a few. Although borrowers may have access to cheaper credit options as well, payday loans are usually preferred by those looking for quick funds, as they have very short loan application processing times.
The following eligibility criteria must be met to apply for a loan through Swift Money. Applicants must:
Lenders may have additional eligibility requirements in addition to this criteria.
The credit broker services provided by Swift Money have the following pros & cons:
According to the broker’s website, loan applications are usually processed in a very efficient manner, although the time it takes for a loan application to be approved by one of the lenders in the broker’s pool has not been specified. However, after approval, the loan amount may take as little as 10 minutes to reach the borrower’s bank account.
The broker has a one-page application form available online. Borrowers can fill out this form in a matter of minutes and file the loan application. After the form has been submitted, Swift Money forwards it to its pool of lenders. In case a lender is interested in offering a loan, it may process the application automatically or require additional forms/documentations before reaching an approval decision on the loan.
A major advantage of payday loans is that they are also available to borrowers with a poor credit history. Such borrowers are usually not able to secure short term credit from conventional banking channels, and payday loans are the only option available to them to cover short-term expenditure.
Swift Money does not charge any fee to borrowers for provision of its loan facility. However, the broker charges commission to lenders in exchange for sharing the borrower’s information, which brings business to the lender.
Payday loans are one of the most expensive short term loan options available to customers in the credit market. However, some loan applicants may be better suited for a cheaper loan option that is not being offered by any lender in the broker’s pool. Hence, applying through Swift Money may not be the best short-term credit option available to some borrowers.
The representative APR charged on the loans sought through Swift Money is 815.74%.
For example, if a borrower takes out a loan of amount £250 for a period of 30 days, the total that would need to be paid is £310 as it would include £60 charged as interest. The interest rate paid on these loans is fixed at an annual rate of 292.25%.
The broker does not charge any fee for its services.
The APR that is actually charged by the lender that approves the loan may be significantly different from the representative APR as quoted by Swift Money. Borrowers are advised to verify the total amount they are expected to repay by the end of the loan term before finalizing a loan application.
The maximum interest that can be charged by payday lenders as per law in a single day is 0.8%. Also, the maximum charges that can be applied in excess of the interest expense is £15.
The average APR charged by the lenders in the Swift Money pool is 1,255.66% for a period of 30 days. The following table illustrates the total that a borrower would need to pay corresponding to these loan amounts.
|Loan Type||Loan Amount||Loan Term||Total Repayable||Charge of Credit|
|Payday Loan||£100||30 days||£124||£24|
|Payday Loan||£400||30 days||£496||£96|
|Payday Loan||£700||30 days||£868||£168|
|Payday Loan||£1,000||30 days||£1,240||£240|
The following information is required to be submitted during the application process by the borrower:
Applicants need to follow these steps to apply for a payday loan through Swift Money.
The online application form can be accessed by visiting the Swift Money website at www.swiftmoney.com The following window appears at the center of the homepage.
Applicants are required to select the loan amount and the loan term they require, and click on the ‘Apply Now’ button to proceed to the application form.
The one-page application form, as displayed above, must be filled out as accurately as possible to avoid any processing delays. The form requires information pertaining to a borrower’s personal details, address information, contact details, employment details, and financial details. After all of the required details have been filled out, click on the ‘Apply Now’ button to submit it.
As soon as Swift Money receives a filled application form, it forwards it to more than 20 payday lenders operating in the UK. Applicants are informed about the decision on their loan application via email, which also includes a link to the lender’s website for further processing in case the initial loan application has been approved. At this point, lenders may either require applicants to provide additional information, or simply confirm a few details before giving a final approval. The final approval is given by handing out the loan agreement to the applicant for signature.
Once the applicant has signed and submitted the loan agreement back to the lender, the loan amount is disbursed into the applicant’s designated bank account. The time period it takes for the funds to process varies with each lender, so it may take as little as a few minutes to as much as three days, or even longer, for the loan amount to reach the borrower’s bank account.
No, as Swift Money is a broker and simply responsible for forwarding the loan application to the lenders in its pool. However, the lenders will conduct a credit check, although most of them will base their loan approval decision largely on an applicant’s affordability instead of their credit history, as is common with most payday lenders.
Although the essence of payday loans is that they are paid off by the upcoming payday of the borrower, Swift Money offers borrowers the option to get loans from lenders that offer a loan term of as long as 24 months. In this case, repayments are scheduled at regular intervals, and borrowers are expected to make repayments with the money received at each payday.
Yes, Swift Money accepts applications even from those applicants that have a bad credit history, and it forwards them to lenders that are the most suitable considering the applicant’s particular loan requirements. It is up to the lenders whether they find an applicant eligible for a loan, although most payday lenders are willing to lend to those with a bad credit score provided they have an adequate income stream.
The initial application process may take a couple of days to be approved by the lenders in the broker’s pool. After approval has been received, in most cases the lender will disburse the loan amount within minutes, although it may take an additional three days (maybe more or less) for the funds to deposit into the borrower’s bank account.
Missing a due payment has a negative impact on the borrower’s credit rating and also invites additional fees to the outstanding loan balance which may range between £1-£15. It may take months for a borrower to recover from the reduced credit rating, which may make it difficult to apply for new, cheaper loans.
Swift Money is offering the services of a broker in the payday loans category. However, do you want to look at a few alternative options before making a decision? The following table highlights a few lenders/brokers that are offering similar services in the UK. These have also been reviewed and rated by Credit Raters.
|Get My Loans (Instalments Loans Broker)||Get My Loans is a loans broker in the UK facilitating the provision of instalment loans between the amounts of £100-£3,500. The loan term spans between 2-24 months, and the representative APR is 97%.|
|Cash Flex (Short-term loan Broker)||Cash Flex is a short-term credit broker operating in the UK, connecting borrowers with lenders to help them secure loans of amounts between £100-£5,000. Loan terms from 3-36 months are available, depending upon the loan amount. The service charges a 49.9% representative APR.|
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